One day after New York awarded its sports betting licenses to two bidding parties, sportsbooks are beginning to make partnerships in the state in hopes of preparing for strong consumer interest. On Tuesday, Madison Square Garden Sports Corp. and Madison Square Garden Entertainment Corp. announced that they have agreed to a multi-year partnership with BetMGM, one of the sportsbooks that will be available in New York once the sports betting market launches. BetMGM has been named an official sports betting partner of the New York Knicks, New York Rangers, and Madison Square Garden Arena.
What Will the Partnership Entail?
The deal between BetMGM and Madison Square Garden will include BetMGM branding with basket stanchion signage at Knicks and dashboard and Zamboni signage Rangers games. In addition, BetMGM will be advertised on MSG Networks during live game coverage of the Knicks, Rangers, New Jersey Devils, and New York Islanders. BetMGM will also be included in content across Knicks and Rangers social media channels, and BetMGM customers will be able to participate in premium experiences at the stadium.
Additionally, BetMGM signage will appear on the digital boards outside the Garden and MSG Networks, which millions of people walk past every day. We also expect Madison Square Garden to open a luxurious sports betting lounge as BetMGM has at Empower Field at Mile High, where the Denver Broncos play, in addition to a handful of other sports venues. As the official sports betting partner of two major teams in the Knicks and Rangers, BetMGM will have plenty of marketing opportunities available in the new sports betting market.
Ron Skotarczak, Executive Vice President of Marketing Partnerships for MSG Entertainment, called the partnership an excellent opportunity for “promoting the continued growth of sports betting” as both MSG and MGM are “world-renowned brands that set industry standards for excellence, exposure, and engagement.” Matt Prevost, Chief Revenue Officer of BetMGM, described the importance of the New York market to BetMGM’s growth and called a partnership with the “world’s most famous arena and its legendary team” an ideal way to “start a relationship with the Empire State.”
When Will New York Launch Sports Betting?
BetMGM was one of nine operators to be granted a statewide mobile sports betting license in New York on Monday and Caesars, DraftKings, FanDuel, BetRivers/SugarHouse, Kambi, PointsBet, Wynn, and Resorts World. Adam Greenblatt, CEO of BetMGM, still expressed his belief that BetMGM is “well-positioned to be a leader in the state” and that New York can quickly become one of the largest sports betting markets in the United States. With 19 million people, New York is the fourth-most populated state in the country.
Operators are expecting to have a difficult time turning a profit initially as New York’s tax rate of 51% will be the highest rate in the country and about five times the national average. However, sportsbooks expect their licenses to last for an entire decade, and that longevity helps somewhat offset the high tax rate. New York sports betting is expected to launch by Super Bowl LVI, which is on February 13, 2022. The Super Bowl could become a massive event for New Yorkers as the beginning of their sports betting market.